The crypto market is poised for a transformative phase, particularly in the exchange-traded funds (ETFs) sector. With the U.S. Securities and Exchange Commission (SEC) under a new political regime, Solana ETFs are now in the spotlight with high odds of going live in 2025.
Industry leaders like Matt Hougan, Chief Investment Officer at Bitwise Asset Management, and Matt Sigel, Head of Digital Asset Research at VanEck, have expressed optimism about the Donald Trump-led administration and what it means for innovative crypto products, including SOL and XRP ETFs.
Solana ETFs in view
Solana, a high-performance blockchain known for its scalability and low transaction costs, has increasingly become a focus for institutional investment. SOL’s potential inclusion in ETF offerings signals growing confidence in its technology and ecosystem.
Matt Sigel of VanEck described their filing for a Solana ETF in June 2024 as a strategic move, anticipating a shift in regulatory attitudes. He highlighted that the Donald Trump administration, a more innovation-friendly environment, could pave the way for SOL ETFs and other crypto-based investment products.
“We would expect the SEC to approve more crypto products than they have in the past four years,” Sigel noted. He added that the likelihood of a Solana ETF becoming tradable by the end of 2025 is “overwhelmingly high.” It bears mentioning that a SOL ETF would diversify the market offerings currently dominated by Bitcoin and Ethereum ETFs.
This diversification could attract a broader range of investors, further legitimizing cryptocurrencies as a leading asset class.
Regulatory changes to foster crypto innovations
The crypto ETF sector has historically faced regulatory resistance, with the SEC often adopting an enforcement approach under Gary Gensler. However, industry experts suggest that a return to a disclosure-based regulatory system could unlock significant opportunities for innovation.
Matt Hougan of Bitwise emphasized the profound impact of these regulatory changes on the crypto industry. “For the past four years, crypto has been operating with one arm, maybe two arms, tied behind its back,” Hougan remarked.
Related: How the 2024 U.S. presidential election could impact the crypto industry
With diminished regulatory headwinds, he anticipates a surge in crypto innovations and real-world adoption. “The election was a massive win for crypto. It’s a complete game-changer,” Hougan stated. Recall that the first-ever bitcoin ETFs in the U.S were approved in January 2024, paving the way to the launch of Ethereum ETFs in the following months.
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